Dow (DOW) announced that it has signed an agreement to sell its flexible packaging laminating adhesives business, within Dow’s Packaging & Specialty Plastics segment, to Arkema (ARKAY), a leader in specialty materials. Five manufacturing sites in Italy, the United States and Mexico will transfer to Arkema and include Solvent-Based Laminating Adhesives, Solventless Laminating Adhesives, and Heat Seal Coatings product families. The transaction value is $150M or approximately 10 times forecasted 2024 EBITDA. The transaction is expected to close by the end of 2024, subject to regulatory approval. Dow will retain its water-based laminating adhesives and acrylic adhesives businesses in Packaging and Specialty Plastics, as well as adhesive solutions in Dow Consumer Solutions and MobilityScience, which align with the company’s market growth strategies.
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